Bank appraisals of homes at a new high: €2,228/m2 in June
The median bank appraisal value for housing reached €2,228/m2 in June, a new all-time high — up 0.9% on May and +16.6% year on year. For flats, the median was €2,613/m2 (+18.3% y/y); for houses, €1,600/m2 (+15.2%). The figures cover 33,595 appraisals, with Greater Lisbon (€3,411/m2) and the Algarve (€2,988/m2) at the top and the Alentejo and Centro regions (around €1,710/m2) at the bottom. A clear signal for anyone buying, selling or renegotiating financing.
Ref.: Statistics Portugal (INE), Bank Appraisal Survey on Housing — June 2026, released 24/07/2026.
Fewer homes sold, for more money: record median price of €2,337/m2
In the first quarter of 2026, the median price of the 35,953 dwellings sold was €2,337/m2 — a series high, after a 19.8% year-on-year rise — while transactions fell 10.5%, the second consecutive quarterly drop. Buyers with tax residence abroad paid a median of €3,000/m2, against €2,313/m2 for residents. Lisbon (€5,292/m2), Cascais (€5,000/m2) and Oeiras (€4,511/m2) lead among the most populous municipalities; Guimarães (+41.9%) and Vila Franca de Xira (+32.2%) posted the sharpest increases.
Ref.: INE, House Prices at Local Level — 1st quarter 2026, released 17/07/2026.
Short-term rentals: municipalities with over a thousand registrations have until 31/12/2026 to regulate
Decree-Law no. 151/2026 of 30 July gives municipalities that exceeded one thousand short-term rental (AL) registrations as at 31/12/2025 until 31 December 2026 to decide on drawing up or amending their municipal AL regulations. They may also, exceptionally and once only, extend an existing suspension of new registrations or impose an additional suspension — never beyond 31/12/2026 and with no retroactive effect. The regime lapses automatically once the new municipal regulation enters into force. Anyone holding or considering investing in short-term rentals in Lisbon, Porto and other covered municipalities should watch the coming months closely.
Ref.: Decree-Law no. 151/2026, Official Gazette of 30/07/2026.
Mortgage lending: from 1 August, the maximum debt-service ratio drops to 45%
The Bank of Portugal’s new macroprudential recommendation took effect on 1 August, applying to contracts whose creditworthiness assessment takes place from that date. The debt-service-to-income limit (DSTI, calculated with a 1.5 p.p. interest-rate add-on) falls from 50% to 45% of net income, with exceptions capped at 10% of new loans. Maturities move to two brackets — up to 40 years for borrowers aged up to 35 and up to 35 years for the rest — and the exception allowing 100% financing for properties held by the lending bank itself disappears (LTV stays at 90%/80%). Real-estate leasing leaves the scope of the recommendation.
Ref.: Bank of Portugal macroprudential recommendation, in force since 01/08/2026 (replacing that of 01/07/2018).
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